2: Montana Individual Income Tax Return (Form 2) (2025)
Montana · Montana DOR · Used for tax years 2025
Form 2 is Montana’s 2025 Individual Income Tax Return. It reports income, Montana adjustments, tax, credits, and payments to calculate tax due or a refund, and it can also be used to amend a return.
What you'll need
Have the following available, as they apply to your return:
- Federal Form 1040. Form 2 uses amounts from lines 11b, 12e, and 13b to begin the taxable income calculation.
- Withholding forms. Forms W-2 and 1099, Montana Schedules K-1, and Form LOWCERT provide amounts for the withholding and pass-through entity tax credit lines.
- Payment information. You will need your 2025 estimated tax payments, any overpayment applied from your 2024 return, and any extension payment.
- Supporting forms for adjustments or credits. The form specifically says to include Forms ETM, WMRE, RCYL, QEC, TETC, IUFC, JGI, ADPT, or federal Form 3468 for the corresponding claims.
- Account information, if applicable. The medical savings account calculation uses your year-end account statement. Refund deposits require routing and account numbers.
- Household income and housing payment information, if claiming the elderly homeowner/renter credit. Schedule 2EC asks for household income, property tax billed for your Montana residence and up to one acre in 2025, and rent paid for your Montana residence in 2025.
Common mistakes
- Using staples. The form says “No Staples.”
- Requesting direct deposit on your first Montana return. Direct deposit is not available if you are filing a Montana return for the first time.
- Forgetting to sign. The signature section is marked required, and the refund instructions remind you to sign the return.
- Using the resident tax line when directed to Schedule II. Nonresidents, part-year residents, and Montana residents with nonresident or part-year resident spouses must transfer page 2, line 11 to Schedule II, line 23, and page 2, line 12 to Schedule II, line 18. They must leave page 2, line 13 blank.
- Combining states or countries on one credit calculation page. Schedule III, Part II says to complete a separate page for each state or other country and report the combined total on Part I, line 1.
Questions people ask
Is there a subtraction for taxpayers age 65 or older?
Yes. For 2025, page 1, line 6 provides a $5,660 subtraction for taxpayers age 65 or older. The amount is $11,320 for married taxpayers filing jointly when both are 65 or older.
Can I apply my overpayment to next year's estimated taxes?
Yes. Enter the amount of your overpayment you want applied to your 2026 estimated taxes on page 1, line 24.
Can I put part of my refund into a 529 or 529A account?
The form provides a line for the amount you want deposited into a 529 or 529A account and a section for the account details. It also states that direct deposit is not available to first-time Montana filers.
How is the Montana Earned Income Credit calculated on this form?
Page 1, line 15 tells you to multiply your federal Earned Income Credit by 10% (0.10).
Where do I identify an amended return?
Mark the amended-return box at the top of page 1. Schedule V provides spaces for the adjustment type, the form or schedule and line or box being changed, and the reason. Page 1 also has lines for payments made with the original return and the previous overpayment.